Australia: Proposed state-wide extension of vacant residential land tax (Victoria)
Proposed changes in vacant residential land tax would extend to residential land that has been undeveloped for more than five years
Proposed state-wide extension of vacant residential land tax (Victoria)
The Victorian government announced that it will be introducing legislation to extend the vacant residential land tax to unoccupied residential properties across the entire state.
In addition, proposed changes in the vacant residential land tax would extend it to residential land that has been undeveloped for more than five years in established areas of Melbourne from 1 January 2026, closing a loophole on unimproved land.
Currently, vacant residential land tax only applies to empty residential properties in Melbourne’s inner and middle suburbs for more than six months.
The period that properties can be deemed vacant would start on 1 January 2024, with the change commencing in 2025.
Existing exemptions would continue to apply across Victoria, including to holiday homes, properties recently acquired or regularly occupied for work purposes, and properties being built or renovated.
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